Capital One Bank is paying $165 million to settle charges that it pressured credit card customers to buy costly add-on services like payment protection and credit monitoring.

The Consumer Financial Protection Bureau said Wednesday that Capital One call-center workers told customers the products were free, misled them about the benefits and let people think the services were required to hold a card.

The CFPB said Capital One will refund about $140 million to 2 million customers and pay $25 million in penalties.

The order against Capital One is the first enforcement action by the CFPB since it was set up a year ago.

The agency was created under the Obama administration's financial overhaul law to protect consumers from excessive or hidden fees and other financial threats.